Why Ethereum’s underlying growth rate remains strong despite price correction

Ethereum has one of the most promising ecosystems in the crypto space. On the contrary, many would disagree with the view of Ethereum’s ever lower price level.

For example, at the time of writing, altcoins are trading well below recent all-time highs. In fact, after a nearly 4% correction in the last 24 hours, it costs just $3,059.

Source: Trade View

However, the network continues to show strong underlying growth. Here is a brief overview of some of these indicators.

Positive fundamentals

The much-anticipated transition to Ethereum 2.0 continues to be hotly debated on the internet.

Ethereum 2.0 is an upgrade aimed at improving the network’s speed, efficiency and scalability. This will take the network to the next level as more transactions can be made, congestion avoided, etc.

After updating the latest status, the number of Ethereum locked in the Ethereum 2.0 contract has exceeded 9 million. According to Etherscan.io data, the ETH 2.0 contract contains approximately 9,062,418 ETH worth more than $28 billion (at the time of writing).

The source: ether scan

Comparing the same dataset with last year, ETH has indeed come a long way. The amount of ETH locked into the contract has increased by 22.29% since the first week of September 2021, when the contract was just 7.4 million ETH.

This is indeed a bullish development for the second largest cryptocurrency by capitalization.

Overcome the storm

No doubt the ETH advocates in the ecosystem are trying to steer the boat through the tough times. According to on-chain data, the total number of Ethereum addresses with funds is currently more than 68 million. This number rarely declines despite a history of price volatility over the past year and maintains steady growth through the June-August period.

The number of daily ETH transactions stands at around 1.2 million at the time of writing. The other day in the block tweets:

“The number of ETH holders continues to grow, reaching a new all-time high of 68.34 million addresses. Although ETH price is still quite far from ATH, the number of transactions is near the highs with an increasing number of holders, reflecting increasing demand.”

Source: Intotheblock

The enormous popularity of the NFT and its valuation is also one of the most important catalysts for increasing the value of the above statistic.

Just recently, former Messari Research CEO Ryan Watkins tweeted:

“I don’t think you can estimate the spread of NFT. The crazy thing is that the entire industry could grow 10x from now and still be an outlier compared to the rest of the industry. NFT: $12 billion. Total cryptocurrencies: $2 trillion.

It must be said that there is no positive price action in the market and despite the above on-chain metrics, ETH’s market performance is currently seen as bearish.

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